Saputo Inc. (SAP.TO)

Pretty expensive at this time. They have been a growth by acquisition story for the past 5-6 years. Did very, very well, but their multiple is now stretched for the kind of growth they are going to deliver. Feels they are tapped out in terms of their balance sheet and are going to have to consolidate their recent acquisitions. Believes they will start to bring their numbers down over the next couple of years. He is Shorting this stock right now.

Has been growing by acquisitions. Extremely well run. Good track record of making acquisitions, integrating them and making them accretive. They have to make an acquisition to move the stock, which is getting harder and harder.

Difficult last two quarters. Canada, US and Argentina. Constantly fighting to keep their market share. Can’t see any dividend increase here. Company needs to get their act together.

(Market call minute.) This is a competitive market. The big thing with this company is the cost of the ingredients and there has been some inflation there. He could see some improvement in that industry, particularly with the attack on our marketing boards. This could be a potential beneficiary.

This is okay if you are looking at the North American market but his choice in the dairy field is a New Zealand company Fonterra Cooperatives (FSF on the New Zealand Stock exchange), the world’s largest dairy exporter.

It is not trading cheap enough to warrant a position in his portfolio. It is not too exciting to him.

Has been a rock solid performer for decades. Steady cash flow and well managed. They make very, very good acquisitions. Has always had a bit of a premium valuation because of how they’ve performed and the stability of their business.

This is a growth by acquisition company, so she has never owned it. In the dairy/cheese making industry which is a very mature industry. Recently did an acquisition in the US, which will give them a bit more growth there. She could never see a reason to pay up for that growth.

(Market Call Minute.) Behaving really well. Recently consolidated over the last 3 months. He would add at this time.

Has trouble buying into an overbought situation because you get massive correction on the downside. It could go up another 10-15% first, but that is the challenge.

(A Top Pick Sept 14/11. Up 15.05%.) Still a reasonable entry point. Very acquisitive and their balance sheet is reloaded and this could be very beneficial to the earnings.

(Market Call Minute) Loves it, but there are a bunch of negative short term developments.

Raised its dividend again today by 10.5%. Loves companies that have a history of raising dividends over time. Had a bad quarter but it gives you a buying opportunity. At the higher end of its PE multiple range of 16X earnings. Would buy below $40.